Okta (OKTA – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Rob Owens from Piper Sandler reiterated a Hold rating on the stock and has a $110.00 price target.
Rob Owens has given his Hold rating due to a combination of factors impacting Okta’s stock. The broader security and infrastructure software sector experienced a significant downturn in March, with an average performance decline of 10%, which reflects the challenging macroeconomic conditions and geopolitical uncertainties affecting the market. Despite Okta’s positive performance in March, the overall environment remains uncertain, leading to cautious sentiment among investors.
Moreover, while Okta showed strong performance, the average EV/NTM revenue multiples for the sector have decreased, indicating a cautious approach towards valuation. The ongoing macroeconomic challenges and the pressure on enterprise IT investments contribute to the Hold rating, as these factors could potentially impact Okta’s future growth and profitability. Therefore, Rob Owens believes that while Okta has potential, the current market conditions warrant a more conservative stance, justifying the Hold recommendation.
In another report released on March 31, Stephens also initiated coverage with a Hold rating on the stock with a $127.00 price target.
OKTA’s price has also changed dramatically for the past six months – from $72.390 to $105.380, which is a 45.57% increase.